Strong Thai Bhat is biggest challenge to tourism in Thailand

The Tourism Council of Thailand (TCT) said that the strong Thai baht is proving to be the biggest obstacle in trying to lure tourists to the country. The Council has now lowered its projection of over 40 million foreign visitors this year down to 39.7 million. 

According to the president of the Council, the surging Baht is the main reason for the decline. “It’s frightening to see the baht so close to 30 to a dollar. It’s the key reason for arrivals and receipts growth being lower than expected,” he warned.

The country’s significant current account surplus is being blamed for the strengthening of the currency and Somchai Amornthum from Krungthai Asset Management (KTAM) says that although the surplus is less than it was last year, it could still strengthen the Baht, albeit at a slower rate.

Amornthum said: “The baht could break past the 30 per dollar band at some stage next year, but the degree of currency appreciation is not expected to be too strong.” 

The Bank of Thailand is limited in what measures it can introduce, with the policy interest rate already low, and Somchai says any further policy easing would have limited effect.